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Curzon Energy Plc (LON:CZN)

Curzon Energy Plc (LON:CZN)


Share Price
2.850 p
Change
-0.25 (-8.06 %)
Market Cap
£2.20 m
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Curzon Energy Plc

Curzon Energy is an oil and gas company focused on shareholder value creation through strategic and targeted global oil and gas acquisitions. Currently, the Company has one asset in Coos Bay, Oregon where Curzon is 100% owner and operator of a known and tested coalbed methane gas accumulations on c. 45k acres. The Company will seek to identify and acquire assets, which are deemed attractive...

EPIC: CZN
Market: LSE:CZN
52-week High/Low: 11.400p / 2.750p
Sector: Oil & Gas
Market Cap: 2.20M
Website: www.curzonenergy.com

Curzon Energy Plc

www.curzonenergy.com

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Big picture - Why invest in Curzon Energy Plc


Curzon Energy Plc Snapshot

The Coos Bay asset has historical positive test data; 86 to 419 BCF of contingent resources and up to 1,000 BCF of CBM gas in-place. The previous operator has spent C. $37m to date and has drilled 5 wells and laid 4 miles of pipeline running from these 5 wells, ready to be connected and within 15 metres of the regional pipeline. The 5 wells tested gas up to 100 Mscf/day each in an area selected for initial development due to proximity to a regional gas pipeline.

The Directors intend to implement a cost effective staged development plan to maximize shareholder value. Curzon will be able to take advantage of local gas pricing in Oregon which significantly outperforms the broader market.

The company is led by an experienced board and senior management team who have extensive industry and financial experience.

 

The orange areas of the map show coalbed methane fields in the USA

 

Coos Bay Asset Highlights

 

High gas price; reserves potential; existing infrastructure; entry price

Asset Overview
  • Curzon Energy is 100% owner and operator of approximately 47,000 acres of known and tested Coalbed Methane (CBM) Gas accumulations in the Coos Bay area of Oregon.
  • Eocene aged Coal Bed Methane Gas in Coos Bay Oregon at a depth from 4000 ft to the surface
  • CBM is created during the formation of coal. Methane is trapped by water within a coal seam. Relatively low cost wells are drilled into the coal seam and when the water is pumped out the coal starts releasing methane gas.
  • Previous operator has spent C. $37m to date and has drilled 5 wells and laid 4 miles of pipeline running from these 5 wells. This existing pipeline infrastructure is ready to be connected and within 15 metres of the regional pipeline. The regional Coos Bay pipeline has a capacity of 3.9 BCF/day.
  • The 5 wells tested gas up to 100 Mscf/day each in an area selected for initial development due to proximity to a regional gas pipeline. Nearby wells test up to 500 Mscf/day.
  • The Coos Bay asset contains 86 to 419 BCF of contingent resources and up to 1,000 BCF of CBM gas in-place, and an average gas content of 148 scf/ton.
  • Total net thickness up to 70+ ft from over 10 coal seems, and average permeability of 6 md.
  • First Gas by end of Q2 2018.
  • CBM wells are different from conventional gas wells as they tend to be cheaper to drill as are mainly a lot shallower. CBM wells also produce gas for a lot longer than conventional gas wells.

Production life

5 existing wells; 2 new phase 1 wells

 

Reserves & Resources

 

Gas in Place Estimate

Curzon Coos Bay CBM – Original Gas in Place Estimates, BCF

  Low Mid High
Upper Coaledo 20.6 66.2 101.5
Lower Coaledo 181.3 579.4 888.5
Total 201.9 645.5 989.9

Contingent Resources Summary

Curzon Coos Bay CBM – Lower Coaledo coals – Contingent Resources, BCF

1C 2C 3C
85.6 273.5 419.4

Individual Well Economics

Single Well Economics Summary – 15 year well life

Type Curve Net Gas,
mmcf
Net Revenue,
k$
Net Opex,
k$
Taxes,
k$
PV10,
k$
IRR,
%
Payout,
yrs
Low 240.5 1,213.8 320.0 72.8 181.5 22.6 4.2
Mid 392.9 1,988.5 512.0 119.3 493.2 40.1 3.1
High 533.2 2,717.5 657.3 163.0 758.9 47.8 2.6

Development Economics: Initial Phase I (7 Wells) and Phase II (58 Wells)

Phase I & II Economics Summary – 15 Year Project Life

  Net Gas,
bcf
Net Revenue,
mm$
Cap Ex,
mm$
Net Opex,
mm$
Taxes,
mm$
PV10,
mm$
IRR,
%
Payout
yrs
Phase I 2.8 15.1 1.2 3.6 0.9 5.5 112% 1.6
Phase II 22.4 123.3 21.5 28.4 7.4 29.1 46% 4.6
Phase I + II 25.2 138.4 22.7 32.0 8.3 34.6 N/A N/A

Source: CPR Report by MHA, May 2017

John McGoldrick, Chairman

John McGoldrick has over 36 years of upstream experience in a variety of senior management roles, notably at Enterprise Oil where he was responsible for its US operations up until Shell’s takeover in 2002. Since then John has served as Executive Chairman of Caza Oil & Gas Inc. (formerly Falcon Bay Energy LLC), a US onshore exploration and production company, which he took public in Toronto and London in 2007, becoming non-executive Chairman in 2010. From 2008 to 2013, John was a non-executive Director of Vanguard Natural Resources LLC, a NYSE-listed Oil & Gas company focused on the US. In January 2012 John joined Dart Energy International as CEO, subsequently becoming MD of Dart Energy in March 2013. He held this post until Dart Energy’s sale to IGas at the end of 2014.


Scott Kaintz, Executive Director, CEO

Scott has extensive experience leading, funding and operating publicly traded natural resource exploration and development businesses on the London markets.

He started his career as a US Air Force Officer working across Europe, the Middle East and Central Asia.  He subsequently held managerial and technology roles in the defence sector in Europe before transitioning to corporate finance and investment positions focused primarily on capital raising and making debt and equity investments in small-cap listed companies.  Scott has significant experience in emerging markets, with a particular emphasis on the countries of the former Soviet Union.    

Scott holds a BSLA in Russian language and Russian Area Studies from Georgetown University as well as MBA degrees from Columbia Business School and London Business School.  He is also a Director of Regency Mines Plc, Red Rock Resources Plc, and Whitecar Limited.


Thomas Mazzarisi, CFO


Thomas Mazzarisi has served as a Manager of Curzon Energy, a natural gas company in the state of Oregon since 2010, where he oversaw the company's recapitalization and currently supervises all corporate, financial, legal and operational matters in connection with the company’s development of its gas properties in Coos Bay, Oregon. He has over 30 years of experience in legal, executive and consulting positions with various private and public companies, where he advised and consulted on a wide range of cross-border and domestic legal and operational matters. Thomas is admitted to the bar in the state of New York.


Thomas Wagenhofer, Executive Technical Director

Mr. Wagenhofer is a petroleum engineer and oil and gas executive with over 20 years’ international industry experience. He is former chairman of AIM listed Magnolia Petroleum plc, which has assets in the United States. He is also the president of Gate Energy, a UK based oil and gas consulting firm as well as a founder partner of Giant Capital, an oil and gas investment specialist. Prior to founding Giant Capital and Gate Energy, Mr. Wagenhofer served as Senior Managing Director of Macquarie Bank’s oil and gas investment division in London. Prior to that he was Vice President at Ryder Scott Company in Houston, Texas, where his responsibilities included reserves evaluations and field development studies. He started his career in 1996 as a petroleum engineer with Atlantic Richfield Company in Dallas, Texas.


Brian Kinane, Non-Executive Director


Brian Kinane is founder and CEO of RiverFort Capital, a specialist alternative investment advisor. He has extensive experience within the hedge fund industry including investment in the natural resource industry and the financing of a number of US-based oil and gas companies. Previously, he has been a founding shareholder and executive director of a number of high growth technology companies including Feedhenry Ltd which was acquired by Redhat Inc for in excess of $80 million in cash in 2014. Brian holds MBAs from Columbia Business School and London Business School.


Owen May, Non-Executive Director


Mr. Owen May is an American banker with over 30 years of experience on Wall Street. He currently serves as a Managing Director of MD Global Partners, a full-service investment-banking firm, and is actively involved in a broad range of investment activities in Israel, China, and Europe. Following his undergraduate degree in biology at University of Miami, Mr. May earned an MBA in finance from Duke University’s Fuqua School of Business, where he currently sits on the Board of Visitors and offers career coaching and opportunities to program participants. He also continues to hold a position on the President’s Council for the University of Miami.

Curzon Energy

Curzon Energy PLC
Stephen Schoepfer / Thomas Wagenhofer
25 Sackville Street
London, W1S 3AX
Tel: +44 (0) 203 542 0981
www.curzonenergy.com

SP Angel Corporate Finance Limited
Richard Hail
+44 203 470 0470

Camarco (Financial PR)
Georgia Edmonds / Billy Clegg / Kimberley Taylor
+44 203 757 4980

Registered office
Kemp House, 152 City Road, London EC1V 2NX

Company Secretary

Thomas Mazzarisi
Kemp House
152 City Road
London
EC1V 2NX
Tel: +44 (0) 203 542 0981

Auditors and Reporting Accountants

Crowe Clark Whitehill LLP
St Bride’s House
10 Salisbury Square
London
EC4Y 8EH
Tel: +44 (0) 20 7842 7100

Solicitors to the Company

McCarthy Denning Limited
25 Southampton Buildings
London
WC2A 1AL
Tel: +44 (0) 20 7769 6741

Registrar

Neville Registrars Limited
Neville House
18 Laurel Lane
Halesowen
B63 3DA
Tel: +44 (0) 121 585 1131

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